What eCommerce Brands Can Expect In 2024
In the ever-evolving realm of e-commerce, staying ahead of the curve is paramount. As we get into Q2 of 2024, it's essential for e-commerce brands to glean insights into the anticipated trends and developments shaping the industry landscape. Let's get into it:
1. Surge in E-commerce Sales:
Forecasters predict a notable uptick in e-commerce sales, projected to increase by 34.1% by Q4 2024. This surge underscores the growing preference among consumers for the convenience and efficiency offered by online shopping avenues.
2. Simplified Returns Process:
The process of online order returns is witnessing significant streamlining, with online suppliers rolling out hassle-free methods for exchanging or returning products. This enhanced convenience enhances customer satisfaction and bolsters brand loyalty.
3. Population Growth and Market Dynamics:
Anticipated population growth in key regions such as Austin, Texas; Boise, Idaho; Charleston, South Carolina; and Salt Lake City, Utah, is poised to fuel industrial activity. The correlation between population growth and industrial dynamics underscores the strategic significance of these burgeoning markets for e-commerce expansion.
4. Vacancy Rates and Construction Trends:
Across all size ranges, there's been a year-over-year increase in overall vacancy rates, driven primarily by a surge in vacant new constructions. However, speculative development in smaller-sized products has mitigated vacancy rates, maintaining them below the national average.
5. Deceleration in Construction Starts:
The construction sector is witnessing a deceleration in starts for the 6th consecutive quarter, resulting in significantly less first-generation space in the market. This trend is anticipated to persist into early 2025, shaping the availability of commercial spaces for e-commerce ventures.
6. Leasing Activity Insights:
Leasing activity has experienced a downturn, with a notable decline compared to previous years. Renewal leasing activity has shown resilience, while new leasing activity witnessed a decline in 2023. Additionally, bulk leasing, particularly in the 100K SF+ range, saw a notable decrease compared to the previous year.
7. Dominant Players and Sector Dynamics:
3PLs continue to emerge as prominent occupiers, albeit with a slight decline in market share. Notably, sectors such as Automobiles, Tires, & Parts have witnessed substantial year-over-year improvements, driven by robust demand from EV manufacturers.
As e-commerce brands navigate the dynamic landscape of 2024, it's imperative to remain agile, adaptive, and attuned to emerging trends. By leveraging these insights, businesses can position themselves for sustained growth and success in the ever-evolving e-commerce ecosystem.
What does this mean?
With each year, have an ebb and flow in contingency with the overall market. We hope that this information provides opportunity as well as caution in making smart business decisions in 2024. Growe works to understand market trends so we can continue to be an informed resource for our clients and our network.
